The “BUT Loan”?

July 21, 2011

By Brian Short, CMC®, CRMS®, GMA®

How many times have you gone out to look at a possible house to buy and discover that you like everything about the house BUT – the windows, the flooring, the size of the closets, the way the bonus room is finished out (or not finished out) or the number of bathrooms? How many times have you thought, “There is no reason to move? We could just stay here in this house for 5-10 more years. Everything about this house still fits our needs BUT – the age of the kitchen and bathrooms, the size or number of bedrooms, the roof and siding need replacing, or the basement still leaks.”

What many homeowners and homebuyers don’t realize is that there is a loan available which will allow for the cost of repairs or renovation to be “rolled in” to a new loan used to buy or refinance an existing home. This loan is referred to by the Federal Housing Administration (FHA) as the 203k loan but I like to call it the “BUT Loan” – for those who like everything about that house – BUT…!

Just think about your current home. Would you like to update the kitchen with granite countertops, new appliances and the latest cabinets? What could you do to your master bathroom to make it more useful or roomy when you both are getting ready for the day or to make room for your Jacuzzi tub which would help you unwind at the end of a busy day? Do the kids need an extra bathroom now that they are getting older? Do you love your neighborhood and everything about your location but desire to build a new master bedroom or family room to give your growing family the space they need?

Have you been shopping to buy a new house closer to work or the schools you like but can’t find a house which has what you need? Are you hoping to move out and far away from the rush of the sprawling city but are only finding old farm houses and houses which are very dated?

The FHA 203k – or the “BUT Loan” will allow you to borrow the money you need to make the house you are considering your DREAM HOUSE since you will be allowed to have the extra money upfront to contract with skilled workmen who will come in and kick out all of the “BUTS” which are keeping you from loving your house. The appraiser will assign the value of your new loan based on the final improved condition of your house after the repairs and renovation is complete. Matter of fact, if you are buying a new home you can even roll in the mortgage payments – up to 6 months – if you are unable to live in you new house while the rehabilitation is being completed.

The down payment on the purchase of a house using the 203k would still only be 3.5% of the improved value and if you are using the this loan to update or improve your current house this entire project could likely be completed at no out-of-pocket cost to you as a home owner except for an appraisal which would cost less than $500 and could likely be refunded at the closing. All other costs could likely be rolled into the new historically low rate loan.

Do you know of family members who are hoping to buy a foreclosed house at a great low price but keep finding houses which are beat up, stripped of the appliances or in dire need of repair or updating? The FHA 203k will make their dreams come true when they find out that they can pick out their own cabinets, counter tops, appliances, flooring, siding, paint and wallpaper and not have to drag out these projects over the next 1-3 years. They can have all of these updates and repairs completed even before they move in and roll all of these costs into their low rate 30 or 15 year mortgage.

This loan takes only a couple of weeks longer to close than a normal purchase or refinance loan to make sure all of the repairs have been carefully calculated and the work has been outlined in detail. Nearly any house would qualify for this “BUT Loan” and many borrowers – even those with some credit blemishes in their past – will qualify for this loan when they might have difficulty getting a conventional loan – with no money allowed to pay for the repairs.

If this sounds like something you might want to know more about check out the website: www.REbuildTennessee.com for more details and some “before and after” photos of houses which have benefitted from the “BUT Loan”. Happy dreaming!

Brian Short (NMLS # 168856) is a nationally certified, state licensed mortgage professional with over 13 years of experience as a “Dream Maker and Problem Solver” in middle Tennessee who works for AmeriFirst Home Mortgage (NMLS # 110139). He can be contacted through his website: www.ProMortgageMatters.com.

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HUD Proposes Lowering FHA Loan Limits in Middle Tennessee

May 31, 2011

Last Thursday, just before the long Memorial Day weekend marking the beginning of the 2011 summer, the US Department of Housing and Urban Development (HUD) released a 23 page proposal outlining loan limit decreases in 669 US counties – 13 of them in Tennessee and all of these located in middle Tennessee. 

Unless Congress prohibits these proposals, beginning October 1, 2011, each of these 13 counties, including Cannon, Cheatham, Davidson, Dickson, Hickman, Macon, Robertson, Rutherford, Smith, Sumner, Trousdale, Williamson, Wilson, will see their maximum FHA loan limit decrease $39,200 to a new lower maximum FHA loan limit of $393,300. 

Counties Affected by Possible Decrease in FHA Loan Limits for Loans

The current FHA maximum loan limit in these 13 counties was set at $432,500 in 2008 as a part of the Housing and Economic and Recovery Act during the waning days of the Bush administration in an attempt to stabilize the fragile housing and credit industries. 

This 9% decrease in FHA maximum loan limits in middle Tennessee will affect less than .5% of all of the FHA loans being originated in these middle Tennessee counties.  HUD decision to lower these maximum loan limits is an attempt to ward off the Republican critics in the US House of Representatives who are proposing changes to the FHA mortgage insurance program to limit the expansion of the risk of taxpayer supported programs in hope that private players and investors will re-enter the mortgage industry to replace what the Federal Government discontinues subsidizing.

Last year 32,126 FHA loans were closed in these 13 middle Tennessee counties and the new decrease in loan limits would have affected 138 of those transactions.  The argument could be made that Tennesseans borrowing more than $393,300 to buy or refinance a house would have been able to use other loan programs or that other non-government programs would be developed if FHA would move out of this particular high-end market.  Statistically, these higher-end mortgages have preformed much better than the lower-end mortgages but HUD would argue that these loans are not part of their stated mission to target “lower and middle-income borrowers” when they are using taxpayer money to operate a program insuring home mortgages at more than 150% higher than the Area Median House Price.

What is the expected outcome of such a move if Congress does not block these proposals for home buyers in Tennessee? 

Minimal.  Most first-time home buyers or home buyers with a scarred credit profile are not buying homes $400,000+ homes with only a 3.5% down payment as currently required by HUD for FHA insured loans. 

The initial potential panic caused by news reports of such proposals may cause a handful of buyers to get off the fence to get approved for their high-end FHA insured mortgage in order to beat the October 1, 2011 deadline but because so few Tennesseans will be affected by this proposal, only 138 in 2010, the Tennessee Congressional Delegation would likely not support any legislation thwarting efforts by HUD to continue to solidify the government supported mortgage insurance program – especially if these changes will affect only a few wealthy Tennessee home buyers.

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Just the Facts, Ma’am, Just the Facts!

May 19, 2011

 

Sgt. Joe Friday (Jack Webb) from 50's & 60's hit TV show Dragnet

Buying a home has always been a big decision. But for some people today it’s a difficult decision because of all the conflicting information coming from the media. To make matters worse, that information is often outdated…or even inaccurate.

If you know anyone who is thinking of purchasing a home this year, please share the following information with them:

FACT 1. Mortgage options are still plentiful for borrowers with good credit scores and documented income. All assets & income will need to be fully documented in most all cases for the past 2 years.

FACT 2. There are still programs available, like FHA, that allow as little as 3.5% down payment, and many others that allow less than 20% down.  VA Loans still allow an eligible Veteran to buy a house up to $417,000 with $0 down payment!

FACT 3. Jumbo mortgages are still available on loan amounts even in excess of $2 million dollars.

FACT 4. Vacation/second home financing can be obtained with as little as 25% down, even with jumbo mortgages.

FACT 5. There are FHA Renovation (203k) Mortgages available which can be used to update or repair an existing home. Small projects (under $35,000) can usually be done in such a way where the homeowner or buyer can use up to one-half of this money upfront to purchase materials and then pay the contractor once the project is completed. 

FACT 6. Senior citizens can use their current equity in their home and actually relocate and buy a house and have NO MONTHLY PAYMENT on their new home for the REST OF THEIR LIVES.  The FHA Reverse (Home Equity Conversion) Mortgage can be used by those 62 years of age or older to refinance their currnet home or buy their idea retirement home.

FACT 7. As of today, rates on most mortgages are still at historically low levels when compared to the last 30 years.  Every indication is that rates will likely begin to increase before the end of 2011 – so delay if low interest rates are desired.

FACT 8. Most homes are selling at a big discount relative to 5 years ago.

Make sure your friends and family know the facts! Owning the home of their dreams may not be as hard as they think. Send your friends and family this link and let them know I would be happy to meet with them and help them determine what options are available in their personal situation.

Getting pre-approved for a mortgage BEFORE speaking to a Realtor could help make them a much stronger buyer in the eyes of a seller.

If there’s anyway I can lend a hand, I’ll be happy to do so. Thanks for your help and continued support, and if you have any questions about your own situation call or email me anytime!

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Beyond the Media – National Home Values

April 4, 2011

 

The housing market still faces many challenges. High unemployment, foreclosures and other distress sales are keeping negative pressure on prices. This of course is good news if you are looking to buy as low rates and lower prices have brought affordability to record levels.

How Affordable? -Since 1963, it has cost an average of approximately 43% of ‘per capita’ or individual income to finance the cost of a median priced home (20% down payment and prevailing 30 year fixed rate mortgage). Right now, it’s only about half of that cost at approximately 22%.

Are you holding off on a purchase for fear that prices might fall further? – Chances are that some sellers might be thinking the same thing. If you’re smart about it, you can use that as an advantage to strike the best possible deal on a home today for once sellers believe that prices have bottomed or are going back up, your advantage will be gone.

 Rates are low today, who knows about tomorrow? – Gambling on the expectation of a lower price tomorrow at the risk of higher rates can cost much more in the long run than locking in a sure thing today. Ex. $200,000 30 Yr. fixed loan @ 5% = $1073/mo. today vs. $180,000 @ 7% = $1197 per month later.

Own, Rent or Borrow – One way or another, a home is something we all need every day. The numbers here tell the story and it’s no secret that values have fallen, yet over time, that’s not the case. As you can see by the chart, values over the last 10 years show very healthy appreciation. Can you say the same thing about stocks over the same period?

 We don’t get a history lesson in the news because the news is about the moment and the more dramatic the better. That’s what sells advertising and that’s how they get paid. For the rest of us, taking a rational, longer term view of things makes more sense. This is particularly true when it comes to a home, for this is something we are likely to own for many years rather than just moments.

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Specializing in “BUT” Loans!

January 7, 2011

 

By Brian Short, CMC, CRMS, GMA

Tom and Sherry were looking for their “DREAM  HOUSE” and had been saving, planning, praying and preparing for months – even years – for this day.  Their Realtor had set-up viewing appointments on two other occasions when the three of them had spent over a half a day driving by houses and going into several on the list of their very detailed agent who was doing he could to narrow down what would be the ideal house for these seasoned home-buyers. 

This would be their third house since they were married 27 years ago and they wanted this house to be their last move.  Their kids were now on their own and this house would be the special house for the two of them for years to come.  The price of the houses available were unbelievable and the current low-interest rates allowed them to afford much more of a house than they originally expected.

Today they saw four houses and Tom and Sherry were now facing a dilemma:

1. The FIRST house was just what they were hoping for BUT the previous owner had not kept it in good shape and it needed new carpet, kitchen counter-tops and paint – inside and outside.  Now what could they do?  They didn’t have the money for these repairs in addition to their down payment and closing costs.

2. The SECOND house was in much better shape BUT they needed an additional bathroom and the kitchen appliances were dated and were a color that Sherry could not stomach.  Now what could they do?  They didn’t have the money for these improvements in addition to their down payment and closing costs.

3. The THIRD house was prefect, BUT it was older and the windows needed to be replaced with more energy-efficient windows and some additional insulation was needed in the attic to help make this home more energy-efficient.  Now what could they do?  They didn’t have the money for these energy-efficient improvements in addition to their down payment and closing costs.

4. The FINAL house they saw was just what they wanted BUT the bonus room would need to finished in order for them to have the space they needed to for their home-office and study they needed for Tom and Sherry’s desks and work spaces.  Now what could they do?  They didn’t have the money for this bonus room build-out in addition to their down payment and closing costs.

We are now offering the FHA 203k Rehabilitation Loan Program which would make ANY of these “BUT” HOUSES become the “DREAM HOUSE” for Tom and Sherry because they could borrow the money they need to make any of these updates or improvements – even before they move into their new house.  One half of the money they need to complete these projects would be fronted to the contractor so he could purchase materials and supplies and then he would receive the balance upon completion of the project. 

Any of these projects would qualify – all the way up to $35,000 and this extra money would simply be added to their loan balance at about $6 per month per $1,000.  Therefore, if their project cost them $20,000 to complete, their monthly payment would only increase by $120.  A small price to pay in order to have their “DREAM HOUSE”!  This could all be completed with one loan, one loan transaction and one smooth closing!

Get out there and find YOUR next DREAM HOUSE and don’t let a few “BUT’s” get in your way jumping in on these historically low-interest rates and an abundance of great inventory!

Contact Brian Short at BShort@AmeriFirst.com or CLICK HERE for more information.

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GOING UNDER: America’s Debt Dilemma

November 1, 2010

STEPS TO END IMPULSIVE BUYING

1.  Identify your problem.

2.  Build a support network. Have friends, or relatives help talk you out of unnecessary purchases and share your successes in resisting temptation.

3.  Assess current debts and income and build a workable budget for paying off debts. (Do not continue to increase debts.)

4.  Approach your creditors to negotiate payment plans you can fit into the budget you’ve built.

5.  Use your support network to help you change your buying behavior.

6.  Set up realistic financial goals and a timetable for meeting them.

7.  Keep track of your progress; share your successes. Do what you can to stop backsliding, but don’t dwell on it.

8.  Pay off all outstanding credit card debts.

9.  Set up new guidelines for responsible credit use.

10.  Begin saving money for your financial goals.

11.  Reward yourself for accomplishments (not by spending money).

12.  Check your financial status regularly and adjust any backsliding. Set new financial goals as you accomplish the old ones. And, most important — now that you know the way, help someone else who might be tangled in debt.

Source: Debtors Anonymous


 Answers to the Credit Dilemma

What students can do:

1.  Educate yourselves by reading and checking the Internet on what card companies are up to. (See accompanying Web-site information).

2.  Don’t give up just because you’re in debt. Most students can salvage their situation by addressing it early. Don’t be afraid or embarrassed. Ask for help early. Problems with long-term blemishes on credit reports occur when students feel they can’t win and give up.

3.  Get only one card, for emergency use only. Not many horror stories of debt occur when students have one major card. The danger comes when other companies continue to mail pre-approved offers — and students take the bait. Do not get cards from furniture or department stores. Nightmares about credit seem always to include those secondary cards.

What parents can do:

1.  Teach children early. MasterCard is not shy about putting a card bearing its likeness into a Barbie doll’s hand, so parents should work equally as hard to combat those approaches.

2.  Be ”nosy” about your child’s finances even if he or she is 20 or older. That may be when they need snooping most.

3.  Be a role model. Children will follow Mommy and Daddy’s lead. Will yours see you do the right things?

What companies can do:

1.  Give people accurate information about interest rates. Eliminate the fine print on the back of monthly statements. Bring that information out front, in clear language and charts. Looming legislation may help.

2.  Put the owner’s picture on every card, as Citibank does now. If the industry truly wants to lower card thefts, this would be a major step forward. The idea is simple: If the shopper doesn’t match the picture on the card, clerks should not sell them anything.

3.  Stop targeting teen-agers.

 

What universities can do:

1.  Make personal finance mandatory to graduate. Students should be required to get at least a ”C” for credit. National statistics, surveys and personal testimonies show that students need lessons in personal finance.

2.  Ban solicitors from campus, or at least limit their visits. Make them put away the candy, toys and T-shirts — free gifts designed to attract student interest.

3.  Credit is a privilege. Require people under 21 to take a test on money matters before qualifying for a card. In most states, no teen can get a driver’s license without passing a test. It should be that way with credit cards.

TIPS FOR AVOIDING DEBT

How you handle your credit and finances is as individual a choice as picking a toothbrush. But here are some general tips to help you stay out of debt, or avoid getting there.

•If you have many cards, cut up all but one. Experts say one is enough. Two is OK for theft of the other card or an emergency.

•Ignore the Joneses; keep up with yourself. Much of credit card hype involves status. Chasing fads can tempt even the most disciplined consumer to spend.

•Pay your entire balance every month. If you can’t, pay as much as possible. Some months, double or triple a payment, but make reaching zero balance a priority.

•Don’t be intimidated by card firms. NCCU sociology professor Ike Robinson likens them to bullies.  ”It’s about power,” he said. ”These are very, very powerful companies with vast resources preying on vulnerable, unstable young people. And most of these youngsters are coming from homes that are not usually affluent.”

•Be like David: Grab your slingshot and fire away at Goliath. Complain if you get hit with improper penalties, late fees or over-the-limit fees. Scrutinize your statement for phony or wrong charges. At least once, photocopy the fine print so you can enlarge it and see what it is saying.

•Network with friends and family to find ways to deal with card companies. Just as you discuss getting the best deal on a car, talk about how you can combine brain power to get the best credit deals possible.

•If you are a parent, teach your child about responsible money management, regardless of age.


Get familiar with your credit report

One of the most important tools you have to rebuild financially is your credit report.

It is the one item that will tell you what creditors are saying about how you handle money, loans, car payments — and credit cards. It also will show how often you apply for credit.

In an age when employers increasingly are asking to see credit reports, you need to arm yourself with information. Become familiar with every item on your report and get them from all three major agencies: Experian (TRW), Equifax and TransUnion.

The first step is to contact the agencies. Call to find out what information you need to send them. TRW will send a free report if you request it. Call 1-800-392-1122. Equifax charges $8. Call 1-800-685-1111. TransUnion charges $8. Call 1-800-916-8800.

Be sure to order a report from all three agencies — to compare and to have the most complete information about your credit history. One agency sometimes will have information that conflicts with figures from another agency.

Here are some common questions you may have when the reports arrive.

Q. How can I get a mistake off my record?

A. According to Equifax, you will have to document the details of the problem in writing.

Some reporting agencies will include a form to use for disputes over information you believe is wrong. The reporting agency then will check with the companies that say they gave you credit. Information that cannot be verified will be removed from your file.

Take up disputes with the company that is the source of the information in question.

Q. What if I still disagree with an item after it has been verified?

A. Send a brief statement for your credit file that will be disclosed each time your file is checked.

Q. What in my credit file could keep me from being approved for credit?

A. The answer varies. It could be directly related to items in your file. Your credit could appear to be perfect, but you could be denied because of not living at your current address long enough. Also, having too many inquiries could make stores think you constantly are applying for credit. If you have questions about why you were not approved for credit, contact the store that turned you down and ask why.

Q. How long will bad credit information stay on my report?

A. Most comes off after seven years. If you filed bankruptcy, it might stay on there for 10 years.

Q. Who can look at my credit report?

A. The law says credit bureaus can disclose any information about you to any person with a ”permissible purpose” for seeing the information.

That could include landlords, car dealerships or employers — anyone who wants to see your financial habits. Your report will show who has been requesting information about you and when they requested it.

Sources: Equifax Credit Information Services; ”Get a Financial Life,” by Beth Kobliner

 CREDIT HELP ON THE WEB

Listed below are Web sites and telephone numbers that should help anyone seeking more information on credit companies’ relationship with college students:

1.www.JumpStart.org — JumpStart is dedicated to increasing financial literacy among teen-agers and children. It is excellent for parents and children. (202) 466-8613.

2.www.ftc.gov — The Federal Trade Commission has a site loaded with information in easy-to-understand English. The publications page should be helpful. (404) 347-4836.

3.www.abiworld.org — The American Bankruptcy Institute site is a must for anyone thinking about filing bankruptcy. This a nonprofit organization that won’t push for or against filing. But it will provide a plethora of information for you to make an informed choice. (703) 739-0800.

4.www.debtorsanonymous.org — This is the site of one the first national help organizations for over spenders and debtors. (212) 642-8220.

5.www.fraud.com — This is the national fraud information center. It has vast resources on how to protect your cards and account numbers. (800) 876-7060.

6.www.powersource.com/cccs/ — This is a national site for the Consumer Credit Counseling Service. The service also has a local office that provides counselors who can help people analyze their debt and how to get it under control. The CCCS also can be contacted by calling 800.251.2227,* Books: ”Get a Financial Life,” by Beth Kobliner; ”Expressing America,” by George Ritzer.

Download this Debt Seminar: Click Here

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4 Reasons to Buy a Home in 2010: Affordability returns to housing, and buyers have loads of negotiating power.

September 13, 2010

 

Brian Short, CMC, CRMS, GMA - Licensed Mortgage Professional

Many people are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you’re brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime.

 Ask for price reductions, improvements, closing costs — whatever — and the seller, desperate to get a contract, is likely to work with you but when the market starts improving, your negotiating power will start to diminish.

 If you’re qualified to buy a home now, and the purchase makes sense for your situation, and you’re prepared to live in that home for at least five years, there are four reasons you may be headed for a great deal:

 1. Affordability is better than ever.

According to the National Association of Realtors’ housing affordability index, homes are more affordable now than at any other point since the group started the index in 1970. The NAR’s affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.

 

 

 What’s your home worth?

 Not all markets have experienced huge drops, however, so it’s wise to take a look at how far prices have fallen in your area. The Federal Housing Finance Agency’s Web site has a house price calculator that can help. Visit the calculator. http://www.fhfa.gov/

I have plugged in the information regarding my house in the Nashville market to see how values are beginning to turn in my favor as a homeowner.  This means that values are starting to go back up and will never be as cheap as they are now.

MSA: Nashville-Davidson-Murfreesboro-Franklin, TN

Purchase Date: Second Quarter 2000

Valuation Date: Second Quarter 2010

Purchase Price: $225,000

Extimated Value: $314,781

   
   
   
   
   
 
When using the House Price Calculator, please note that it does not project the actual value of any particular house. Rather, it projects what a given house purchased at a point in time would be worth today if it appreciated at the average appreciation rate of all homes in the area. The actual value of any house will depend on the local real estate market, house condition and age, home improvements made and needed, and many other factors. Consult a qualified real estate appraiser in your area to obtain a professional estimate of the current value of your home. Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 requires that any appraisal used in connection with a federally related transaction must be performed by a competent individual whose professional conduct is subject to supervision and regulation. Appraisers must be licensed or certified according to state law.The House Price Calculator uses the FHFA Purchase-Only House Price Index for all states, including the District of Columbia, and for the largest 25 Metropolitan Statistical Areas and Divisions.

 

 The median existing single-family home price was $184,200 in June, up 1.3 percent from a year ago. Single-family median existing-home prices were higher in 10 out of 19 metropolitan statistical areas reported in June in comparison with June 2009. The median existing condo price was $180,100 in June, which is 1.4 percent below a year ago. The national median existing-home price for all housing types was $183,700 in June, which is 1.0 percent higher than a year ago.

 2. You have a large inventory to choose from.

In many places it is taking months to sell a home, creating loads of inventory — from new homes to existing homes to foreclosures.   A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture.

 Total housing inventory at the end of June rose 2.5 percent to 3.99 million existing homes available for sale, which represents an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May. This is the largest amount of existing homes for sale, in terms of months of supply, since August 2009. Raw unsold inventory remains 12.7 percent below the record of 4.58 million in July 2008.

 

It’s fair to say that home sellers have become increasingly desperate.  People who have had for-sale signs in the yard for six months are starting to become in tune with the reality of the situation.   Buyers can take advantage.

 But if you put off a purchase until inventory shrinks substantially, you might not get as good a price.  And be forewarned: It’s nearly impossible to time the exact bottom of the housing market, and even if you do, there’s no guarantee you’ll make a killing.

 Buy for quality of life . . . don’t buy on speculation.  I wouldn’t buy a home expecting the housing market to rebound quickly in the next 10 years, and expect moderate gains in values when the turnaround does happen.

Historically, real estate appreciates about 5% a year over the long term. But as the country crawls out of a recession, many markets probably won’t see huge home-price gains any time soon.

3. Builders are offering big discounts.

Home builders are getting even more aggressive with their pricing.  You may consider looking at completed new homes first because builders are offering such steep discounts. Plus, you’d have a warranty not only on the home itself, but also on the home’s appliances, he said.

Builders want to save their credit, save their brand, save their reputation and clear out inventory.  They can go buy cheap land today with that cash.

My advice:  Walk in with a pre-approval for a mortgage, make an offer, and then walk away without making a deal if you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get away.

4. Mortgage rates are historically low.

It’s not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac. (The current limit is $417,000.)

Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks.

More mortgage help could also be on the way. Recently, President Obama said that his new economic plan would help lower the cost of mortgages for home buyers, although he did not give specifics.

But low rates don’t mean lenders are handing out mortgages easily. You’ll need good credit, a substantial down payment and a willingness to document your income in order to qualify for those great rates.

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